Data ethics is more important than ever - what are you doing about it?
Considering the outsized impact of data on the world today - after all, it is widely claimed to be 'the new oil' - it is important to assess its implications for the larger world from a moral standpoint. This is especially true for businesses that collect massive amounts of data from customers and potential customers. As the value of data increases, so does the seriousness of the discussion about data ethics. Today, customers are more aware of their data online than ever before. The honeymoon period for indiscriminately amassing this wealth is long over. What should businesses keep in mind when navigating this data landscape?
Manage consent, and be transparent about it
Collecting data from individuals cannot and should not be undertaken without the consent of the people involved. Moreover, the reason for collecting the information must be relayed in clear words to the user. According to the European Union's GDPR, the world's benchmark data protection regulation framework, consent is only valid if the customer is properly informed. In addition to obtaining consent, organizations must take care to maintain proper records of the consent given, and also realize that individuals must be able to withdraw consent at any time. Companies may resort to hiding such options behind dark patterns, but this goes against the spirit of ethical data collection principles.
Make it easy for people to opt out of data permissions. It is also best to adopt a positive opt-in experience, so that people have to make an effort to accept consent requests rather than having everything auto-ticked, and having to put in the effort to refuse requests. Imagine an elderly person or someone who is not computer-savvy. Companies would get their information easily because they would be less deft at navigating consent request windows. While these are not violations of any regulations, they do constitute unconscionable practices.
Collecting data for one purpose and then using or monetizing the data for another purpose is a no-no. In such a situation, a fresh request should be issued to the end-user.
Speak plainly and win trust
Confusing people with pseudo-legalese and technobabble may not sit well with today's customers who are increasingly suspicious of the data industrial complex. The savvier (and more vocal) users will see through attempts to couch excessive requests within complicated language. While these wins may grant short-term benefits, they may affect your reputation over time. Play the long game instead, and establish trust through conscionable practices. By communicating in clear and concise language, on the contrary, you will win the rust of your customer. They will appreciate the effort you've put in to make things understandable. Also, why stop at enforcing best practices? Highlight these efforts as part of your marketing strategy to stand out from your competitors and position your brand as the more ethical and trustable choice.
Craft your organization's data policy
Businesses can no longer afford to be in the dark about their data. It is best to have competent individuals on board to manage your data initiatives. They can stay on top of the developments and wider policy shifts across the globe and at local levels. Today, the GDPR serves as a policy framework that most organizations try to conform to. It is important to be able to navigate its regulations, understand its nuances, and ensure compliance. Competent data teams can also anticipate changes in policy and pre-preemptively steer your company in a direction that would least impact the company in case of new regulations. For example, there are EU directives in place currently regarding third-party cookie usage but they have not yet become regulations. However, it is best to start transitioning your company to avoid any sudden shocks.
It is important to frame a data policy and usage framework for your organization (and at the function level if need be) that matches your company's philosophy. Make sure that it is disseminated effectively across your business, so that your employees have guidelines that they can always refer to. Gamified training programs and quizzes go a long way in instilling these principles in employees, as data topics can tend to become dry and uninteresting for some very quickly. This eliminates grey areas and improves the speed and clarity of decision-making.
Understand the why, the how, and the where
Collecting every data point you can think of, just to have it, is no longer something companies can or should get away with. Some organizations were adopting this tactic to be on the safe side in what they thought was a scramble for data in which the competitor who collected the most data would beat them out. Instead ask yourself what kind of data is actually necessary. Your data requests must be backed up by clear business logic.
Identify where your data is trickling in from. Some data is collected directly from your company but some data is also collected from data marketplaces. How are these third-party organizations amassing their data? It is important to ensure that your data vendor is an ethical organization and that they adopt best practices to do what they do. When it comes to first-party data, you always have more control over the method of collection and the ethicality of it.
Rome wasn't built in a day
Data ethics requires careful planning and deliberation. They cannot be implemented in a day, and need ongoing efforts and understanding. They require you to get buy-in from your employees at all levels. How can changes in your data practices influence your overall organizational culture? How does it change the way you engage with your customers? Business leaders will have to evaluate these questions and prepare to deal with the consequences as they prepare to transform their organization into a shining example of an ethical company that people trust. One thing is certain: to be complacent about data ethics is to lose the game in the long run.
